OMERS To Invest US$ 400 Million In MLSE
Posted on 11/08/2023
Maple Leaf Sports and Entertainment (MLSE) is a professional sports and entertainment company based in Toronto. MLSE owns the Toronto Maple Leafs, Toronto Raptors, Toronto FC, Toronto Argonauts, Toronto Marlies, and Raptors 905. It also has a foundation for charitable purposes, called MLSE Foundation.
OMERS a Canadian defined benefit pension plan, is acquiring a 5% indirect stake in MLSE for US$400 million through a 20% direct stake in Kilmer Group’s Kilmer Sports Inc., owned by MLSE Chair Larry Tanenbaum. Kilmer Group is a multi-generational investor with three verticals: Infrastructure & Real Estate, Sports & Media, and Private Equity.
Tanenbaum said: “As an owner of MLSE, I’ve always seen myself as a steward of a public trust, working in service to the fans and the public to build Canada’s most iconic sports teams and win championships. Now with this investment by OMERS, I’m thrilled to be sharing this public trust with over 600,000 hard-working Ontarians. Today is a good day for the future of MLSE.” Kilmer Sports owns 25% of MLSE.
Blake Hutcheson, President and CEO of OMERS, said: “This is an exciting and unique opportunity for OMERS members in Ontario communities to be connected to these iconic sports teams in their own backyard. As an investor on their behalf, we actively seek out investment opportunities of the highest quality, that are fortified by trusted partnerships and that offer the potential of significant long-term upside. This one happens to be here in Canada and Ontario which is also really important, and meaningful to OMERS.”
Upon closing, Tanenbaum will retain an 80% stake in Kilmer Sports, and it will maintain a 25% stake in MLSE. Tanenbaum will remain Chair of MLSE. OMERS will be an investor but will not participate in operational decisions of MLSE or any of its teams.
